Something that is clear to everyone is that to get into the Bitcoin mining business, you need money. Now, determining the exact amount is complicated. This depends on many factors, which vary according to the country in question where you plan to start the activity.
In other words, the cost of the equipment must be kept in mind, which varies from country to country and with each provider. At the same time, it is important to consider the costs of the materials needed to run a farm and the rental of the space where the equipment will be housed.
Another fact to keep in mind when talking about getting into the digital mining business is the scale of the initial operations. That is, how many machines are you planning to install and what models. The greater the number of equipment and the newer, the higher the costs.
The money needed to start mining Bitcoin
If you are talking about starting Bitcoin mining with about 5,000 machines, the cost in money can amount to several million dollars. This year, some US companies such as Marathon, Riot Blockchain Y Core Scientific, they made millionaire purchases of these equipment. But the purchase is only part of the expense.
However, here the investment cost will be evaluated with the budget of a normal person or small company. In this case, one could be talking about someone with the intention of setting up a mining room, for example, in an office or in a house.
In a room of these, for example 50 S9 machines could be housed, assuming that the electrical cost is low. If the bill is high, then other more efficient models should be considered. In each country, suppliers have different prices for machines, so it is advisable to take that into consideration to find the price and multiply it by 50.
The first part of the expense is already evident, it is the cost of the equipment themselves. At this same cost you can add the rental value of the site. This includes the initial payment (months in advance, deposit, etc.).
The investment to start the machines
Keeping Bitcoin mining machines running requires a considerable amount of money. It should be considered that 50 S9 model ASICs, with 220V electricity, work with approximately 300 amps. Also, consumption is about 115,000 kilowatts.
During the first case, the type and quantity of cable to be purchased must be considered and, in the second, probably a transformer. In this sense, the cost of a transformer of about 100 or 160 KVA must be evaluated, plus the cost of its installation.
As for the cable, it must be taken into account, assuming it is an office, the place where the transformer is installed and the floor of the same. From there, the number of lines is calculated, for example 3 (phase, neutral and ground) and the distance from the transformer to the office is measured, the number of meters is multiplied by three. For example, if there are 30 meters from the transformer to the office, then 90 meters of cable will be needed.
Of course it is not just any type of cable, but thick copper cable, for example 1/0 or its equivalent 3/0 in aluminum. In this sense, the price of the meter of cable must be calculated and multiplied by 90. It is likely that, taking into account the amperage of these cables, one more line is needed or, failing that, cables with a higher capacity.
Other material expenses
At this point, you already have practically 80% of the money investment for a Bitcoin mining room. If you want to install a few pairs of machines, you will save a great deal, since the vast majority of the expenses described above will not be entirely necessary.
Keeping the example of a room with 50 machines in an office or in a rented house, you should move on to the next investment stage. It is mainly about the extra materials and the installation.
If the person who wants to install the mine room is knowledgeable about electricity, they will not need to hire an electrician. If not, you will need to consider it as another important factor that comes into play in the budget.
You cannot ignore the installation of extractors for air circulation and insulating material to prevent noise from disturbing the neighbors. Depending on the site, air conditioning will not be needed, a fresh air intake is sufficient.
Finally, come a series of small, but extremely necessary expenses to complete the installation. It’s about investing in breakers, plugs, various types of cable for their connections. On the other hand, you will need money for UTP or network cable and a network switch more than 50 ports for machines.
Other major expenses
If it seems like it takes a lot of money to get started in Bitcoin mining, the answer is yes. A significant amount of capital needs to be outlaid to install a modest number of cryptocurrency mining equipment.
The amount of money that you can calculate according to your region, will be accompanied by other important expenses. For example, the cost of permits required in your country for miners, a computer to install the machines (an old one is more than enough).
Only the reality of when you begin to do the work of installing a mining room will tell you the magnitude of the extra expenses that you will have to add to this budget base. In some countries, the general amount, including machines, can range from $ 8,000 to $ 14,000.
Assuming they are S9, you must calculate the hash and multiply it by 50 and with the help of a mining calculator, you will be able to determine the monthly income you will have and the time it will take to recover your investment. How spoiler, We can tell you that Bitcoin mining, despite the amount of money it requires, has no regrets so far.
Data to take into consideration
- The cost in money of the materials and the machines to start mining Bitcoin varies in each country.
- Therefore, it is difficult to say an average figure. However, the data presented in this work can be taken into account to find a budget.
- An important aspect of this business is that a healthy return on investment with your profits is highly probable.
- It is important not to risk money that you may need for other projects, since mining is a business with ups and downs and can cause losses.
- The recommendation is to inquire about the subject and consult with experts in the area or miners in your country.
The purpose of this work is purely informative and didactic. In no way should it be taken as a guide to investing or viewed as an invitation to put your money into this business.
If you consider that the information presented is incomplete or erroneous, we would appreciate it if you would leave your comment to give it the respective consideration.